The number of companies listed on the TSX has fallen from 1,486 in 2008 to 747 in 2023 – an astonishing 50% decline in 15 years. Canadian companies are opting to sell to foreign buyers and leave the country than go public. A flight of capital and the concentration of capital allocation decisions outside the country poses danger to the ecosystem, harming the economic position of issuers, employers/employees, investors, intermediaries, and governments.

The goal of this paper is not to be a sensationalist or controversial, but to start an honest conversation to begin to effect policy changes to reverse course.

Put simply, it is in everyone’s economic self-interest to defend, support and build a robust Canadian investment culture.

The paper explores some of the causes of the hollowing out of equity markets such as rising fixed costs for intermediaries and issuers, the shift towards a knowledge economy, the fall of the four pillars in the financial industry, private capital as a substitute for public equity, and a crowding out by governments.

The paper argues that thoughtful deregulation and commercial leadership can arrest the hollowing out of public equity markets so Canada can lead on the international stage.

Read the paper: https://publications.iiac-accvm.ca/canada-equity-markets-pap…